AN EVALUATION OF THE EFFECTIVENESS OF SALES PROMOTION AS AN ELEMENT OF PROMOTION MIXES (A CASE STUDY OF 7UP PLANT, ILORIN).
CHAPTER ONE
1.0 GENERAL INTRODUCTION
According to and Kirk Patrick (1982). promotion is an important element in marking mix of most firms and it is not important in others for soft drink manufactures, whose products, price and distribution channels are very similar to those of competitors seller of can juices and sweet flavored drinks in includes the members of great many of differentiating their products in the minds of the consumers.
Many industries lay emphasis and attention on promotion than other marketing mix to create effective awareness and it enhance purchase because, promotion gives the description of product to the end users and target market.
However, in the promotional activities, the industry get chance to communicate effectively with potential customer to beat the drum its products.
The promotions are used to disseminating information or communicating with the target audience. They include various forms of advertising, packaging, sales presentation and demonstration, point if purchase displays, sales (literature, films) and incentive tools (coupons contest, trading stamps, premium) and publicity programs. Historically, industries first made separate functions out of personal selling later out of advertising them, out of sales promo tools and ultimately out publicity. The four major promotions.
1.1 STATEMENT OF THE PROBLEMS
The soft drink environment is bedeviled numerous structural and promotional problems from past decades, these problems includes the following;
(a) Manufactures did not take great cognizance of sale promotion.
(b) Manufactures use other promotion tools; advertising personal selling e.t.c instead of whir sales promotion is required.
(c) Sales promotion was being used during and adverse economy. Other problems involved are that bottlers in various townships fail to conduct proper marketing research on the consumer. Gift to be used during sales promotion are those, which the consumers would grave for .
Also the cost of conducting sales promotion should not be too much to avoid running at a loss
Many people do not know what sales promotion means to entail. Others cannot even differentiate one promo tool from another. Bottlers have failed to create in the mind if customers the impression that they are getting something for nothing, also the purpose of sales promotion, when conducting it, is not well communicated to people in certain towns.
1.2 OBJECTIVES OF STUDY
There have been assertions that sales promotion, as an element of promotional mix, has been helping soft drinks bottler effectively. This study tends to correct this impression. The objectives of this research include the following
1. To know if sales promotion really motivate customer to buy (more) of soft drinks
2. To know the response of customer and their behavious to sales promotion.
3. To examine the impact of sales promotion on customer patronage of soft drinks produce.
4. To identity whether the customers will continue to buy the soft drinks when sales promotion activities stop
1.3 RESEARCH QUESTIONS
The motive behind the industry (soft drinks) is continued used of sales promotion provide the major issues of discussion which supply answers to such questions.
1. Do the manufactures realize the impact or effects of sales promotion on their business?
2. Do they examine and evaluate, if sales promotion fails to make expected impact?
3. Will customer buy much of soft drink during sales promotion?
1.4 LIMITATION OF THE STUDY
This research, effectiveness of sales promotion in soft drink industry is constrained by the following factors:
Lack of access to document:- formed the looked worm attitude of the official releasing secret information and fear of espionage from competition
Attitude of respondent:- the cold attitude display by respondent is really disgusting. Financial constraints: transport and academic material ranked highest in the general research.
Time constraints: His appointment of time on academics and other social obligation was indeed not easy.
Social obligation was indeed not easy
Material:- insufficient of Nigeria authority marketing tests.
1.5 SCOPE OF THE STUDY
The main forum of this study is on sales promotion as an element of promotional mix, which indicates that sales promotion will be single out. The study will focus on soft drinks market in Ilorin with reference to 7up bottling company, Ilorin plant.
1.5 SIGNIFICANCE OF THE STUDY
1. The important of this to make many bottlers of soft drink realize the part sales promotion plays as on element of promotion mix. In this sense, many manufactures of soft drinks have used some forms of promotion irrelevant to their problems in order to increase sales and maximized profit.
2. Some do not even know when which promotional to adopt or use this study aims at establishing and critically analyzing the effect of sales promotion as one of the elements of promotional mix.
3. This study is also significant in term of its contribution to existing knowledge. This is to say that the time, cost and energy expended in acquiring this knowledge are justified
1.7 DEFINITIONS OF TERMS
Adverting: - this is any form of ideas goods or services by an indentified sponsor.
Brand: - the name of product which consumer apply their analytical or active thing to win a price
Contest:- a sales promotion in which consumer apply their analytical or creative thinking to win a price.
Competition: - it is the set of alternative firm that could provide a product to satisfy a specific market need.
Coupon:- a sales promotion that usually offer discount price or interest to customers.
Industry: - it is a big establishment by manufacture or services firm for trade and manufacturing.
Management: - this is defined as getting effective result by organizing and directing this co operative effort of humans
Market:- a group of potential customers with similar needs and sellers offering various products, satisfying those needs or group of sellers for something of value. It is those customers who have needs are willing to spend their money to satisfy their needs.
Marketing mix: - the controllable variable or element that the company put together to satisfy a target group, it is called the 4ps (product, price, promotion, place).
Organization: - forms of organized human activities engaged in commercial or industrial activity providing goods and services to the society with the view of making profit.
Point of purchase display:- these are display materials setup at there tail location to build traffic, advertise the product and promote impulse buying, this include windows displays, floor and wall displays, streams and posters.
Premium: - an item that is offends free or at a bargain price to encourage the customer buy and advertised product
Product:- as good or serves or idea consisting of a bundle of tangible and intangible attribute that satisfy consumers and is received in exchange for money or other unit of valve.
Promotion: - communicating information between seller and potential buyer to influence attribute and behavior.
Promotional mix: - they are set of devices or strategies used to achieve promotional objectives (advertising personal selling sales promotion and publicity).
Publicity:-it a non personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium to obtain favourable presentation of it through radio, television or stage that is not paid for by the consumers. Public relations:- the attempt by which information persuasion and adjustment to engineer public support of activity. Course, movement or institution.
Sales promotion:- promotional activities other than advertising personal selling and publicity that stimulate interest, trial purchase by final customers.
Strategy’s:- it lays down the broad principle by which a company hopes to achieve its objectives. The objectives of a company shows where it wants to be, strategy self forth the way to get there
Target market:- the market segments or groups with the market segment towards which all marketing activities are directed.
Trade show:- exhibitions where manufactures, dealer and buyers of the industry’s can get together or demonstration and discussion, expose new product, literatures and sample to customers
Trade stamps:- this consists of stamps given relation to the value purchase which may be redeemed by the consumers for merchandise or cash
1.8 HISTORICAL BACKGROUND OF SEVEN UP BOTTLING COMPANY
Seven up bottling company, plc, (SBC) was founded by a Lebanese in 1956 and on October 1st 1960, production of carbonated soft drink began at the first plant, then located at Ijora Lagos. On the 1st day of production, the companies sold a total of 24 crates of its product in other words, a total of 576 bottlers were sold. Although the number didn’t win the company any awards, it certainly was significant accomplishment of the company.
In order to create a favourable climate for the smooth operation, the company had to become involved with the community. SBC, plc was the first to introduce wreathing in Nigeria by sponsoring the late and great mike Bamidele who won a word little SBC, plc was involved in the first miss Nigeria beauty competition, which has continued to grew in size and importance over the years.
Till date the company sponsors many sporting and special activities amongst which are Pepsi football academy, Pepsi professional football league seven up premier basketball, Mirnda school programme since these are the other brands types of the company (Pepsi & Mirinda)
The company was quoted in the Nigeria stock exchange (NSE) and went public in 1984
The greatest period of growth for SBC plc. Began in the early 80’s with the inadan plant 1980, Ikeja a plant in 1981, the Kano plant in 1985 the Aba plant in 1989 the acquisition of john holt oft drinks with the Kaduna plant in 1989 Benin plant in 1992 and Enugu plant in 2002, making the total number of depts. Now to be 37 several deposit and dealers in all parts of the country. The present range product include seven up Pepsi Mirinda Orage, and the latest of it’s range of product is Mirinda, fruity, which was Launched in the year 2002 and then mountain dew in 2008.
Source: personnel and administrative department of seven bottling company plc. Ilorin plant
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